[Ask the Tax Whiz] BIR clarifies rules on donor’s tax on cash donations

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 10-2026 to clarify the tax treatment of purely cash donations, including filing and payment procedures, documentary requirements, deductibility rules, and the applicability of the electronic Certificate Authorizing Registration (eCAR).

Below are the key clarifications taxpayers need to know:

1. Filing and payment procedures for donor’s tax on cash donations, including required documents 

How is the donor’s tax on cash donations filed and paid?

Donor’s tax for purely cash donations must be filed electronically through available BIR platforms such as eBIRForms, eFPS, or authorized tax software providers. Payment can be made through Authorized Agent Banks (AABs) or the Bureau’s electronic payment channels.

What documents must be submitted?

The following must be submitted within 30 days from the date of donation to the appropriate Revenue District Office (RDO) or Large Taxpayers (LT) Division:

2. Requirement of Electronic Certificate Authorizing Registration (eCAR) for cash donations  

Can cash donations be claimed as a deductible expense? What supports this claim?

Yes, cash donations to accredited donee institutions may be claimed as a deduction from gross income, provided they are properly documented.

The following serve as supporting documents for deduction claims:

• Complete set of donation documents listed above
• Proof that the donee is accredited (e.g., Philippine Council for NGO Certification or BIR accreditation, if applicable)
• Documentation required under Section 34(H) of the Tax Code for deductible charitable contributions

These documents serve as proof of the donation and support future claims for income tax deductions.

3. Is an Electronic Certificate Authorizing Registration (Ecar) required for cash donations?

Do cash donations require an eCAR?

No. The circular explicitly states that an eCAR is not required for purely cash donations.

This is because cash is not a registrable property and does not require transfer of title under any government registry.

RMC No. 10-2026 simplifies compliance by clarifying that while cash donations must still be properly documented and reported, they do not require eCAR, and must follow strict submission and filing timelines to be valid and deductible. – Rappler.com

Mon Abrea is a Global Tax Policy Expert and Chief Tax Advisor of the Asian Consulting Group (ACG), the Philippines’ premier tax advisory and investment consulting firm—providing tax strategy, compliance, and policy advisory services to multinational corporations, foreign investors, and government institutions. For strategic tax advisory, CONSULT ACG, or you may also send an email to [e-mail] to host investment and tax briefing in key cities across Asia, Middle East, Oceania, Europe and North America. 

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